Betr Launches Unsolicited Offer of $1.22 for PointsBet

On 16 July 2025, the Australian wagering sector received a surprise development. Betr Entertainment (ASX: BBT), formerly known as BlueBet, announced an unexpected offer for rival PointsBet Holdings (ASX: PBH), proposing 3.81 Betr shares for each PointsBet share. The bid was announced after market close, surprising most market participants.

Here’s where it gets interesting. PointsBet had already backed an all-cash deal from Japan’s Mixi Inc., priced at A$1.20 per share. Betr’s all-scrip offer values PointsBet at approximately A$1.22 per share, based on its recent trading average. While the premium is small, it’s enough to draw investor attention.

The market’s response? Modest. PointsBet shares rose around 0.4% as investors awaited the board’s reaction. However, this is more than a routine takeover offer. It’s a strategic move by a domestic challenger with serious intent — one that could reshape the competitive landscape of digital wagering in Australia.

 

The Offer: All-Scrip Deal Backed by Buyback and Growth Vision

Betr’s proposal is a pure scrip deal, offering 3.81 of its own shares for every PointsBet share. This values PointsBet slightly above Mixi’s offer, at around A$1.22 per share. While the price improvement is marginal, Betr’s approach focuses on long-term potential rather than immediate gain.

To support the offer, Betr is raising A$130 million through an institutional placement and entitlement offer. Additionally, a selective share buyback worth A$80 million has been proposed, potentially scaling up to A$200 million if Betr secures more than 90% of PointsBet. This structure gives shareholders the option of receiving some cash without changing the all-scrip nature of the deal.

Betr argues that the real value lies in the future. The company anticipates up to A$45 million in annual synergies from combining operations, including savings from shared technology, reduced marketing spend, and improved operational efficiency. These efficiencies could strengthen profitability in a sector facing rising competition and regulatory scrutiny.

Some investors are cautious about the buyback, citing concerns about potential dilution for existing Betr shareholders. There are also questions about whether all shareholders will have equal access to the buyback, or if benefits will be unevenly distributed.

In essence, Betr’s offer includes more than just a marginal price bump. It’s a calculated pitch to create a stronger, more efficient wagering platform — but it requires shareholders to invest in a long-term vision rather than cash out today.

 

Rejection and Rivalry: PointsBet Board Chooses Certainty Over Potential

Despite the attention the bid received, PointsBet’s board rejected it quickly. Within hours, the company reaffirmed its unanimous support for Mixi’s A$1.20 per share all-cash offer and advised shareholders to take no action on Betr’s proposal while an independent review is conducted.

Why reject an offer that appears slightly higher?

According to the board, it comes down to certainty. Mixi’s proposal is fully funded, does not rely on market performance, and has already received key regulatory approvals. It represents a clean and guaranteed exit — something particularly appealing to PointsBet, which has faced challenges following its costly exit from the US market.

Betr, meanwhile, has been strategically building its position. It now holds approximately 19.9% of PointsBet shares — just under the 20% threshold that would trigger a formal takeover under Australian regulations. This holding gives Betr significant influence, potentially enabling it to block Mixi’s scheme and steer the process.

Betr has valued its offer at A$360 million and framed it as a superior, fully funded alternative with clear strategic upside. It sees the merger as a chance to create a market-leading domestic wagering company with strong operational and brand synergies.

While PointsBet’s board dismissed that argument, the decision may not be final. Shareholders with a long-term outlook may be more inclined to support a higher-risk, higher-upside proposal like Betr’s. If sentiment shifts, the board could face pressure to reconsider.

This has become more than a bidding contest. It’s a strategic showdown between a cash-backed foreign suitor offering simplicity and a bold local player aiming to scale through consolidation.

 

What’s Driving This Takeover Battle?

At the heart of the takeover battle is a maturing Australian wagering market. Consolidation is becoming essential for survival and growth. PointsBet, once a rising player in digital betting, struggled with its US expansion and sold its American operations to Fanatics in 2024.

Betr, led by Matthew Tripp — a key figure behind Sportsbet and BetEasy — sees a clear opportunity to build an Australian wagering powerhouse. For Betr, PointsBet offers recognised branding, valuable licences, and proprietary technology. For Mixi, the acquisition is a strategic entry point into both the Australian and potentially broader Asia-Pacific wagering market.

With each suitor offering distinct advantages, investors must consider more than valuation. They must weigh strategy, timing, and risk appetite.

 

Key Catalysts Investors Should Watch

 

Regulatory Approvals

Mixi has already secured FIRB (Foreign Investment Review Board) approval. As a domestic bidder, Betr is not subject to the same scrutiny but could still face regulatory queries from ASIC or the ACCC due to the buyback and competition implications.

 

Shareholder Vote

Shareholder approval remains critical. Betr’s 19.9% stake gives it a blocking position in any scheme vote, which requires 75% approval. The recent general meeting also revealed issues with proxy voting — with over 66 million shares unaccounted for — possibly resulting in a Federal Court review or a re-run.

 

Mixi’s Potential Response

While Mixi hasn’t revised its bid, pressure may build. A counteroffer — perhaps with a higher cash price or hybrid structure — remains a possibility.

 

Execution Risk vs Certainty

Betr’s offer depends on the future value of its shares, which are relatively illiquid and volatile. For risk-averse shareholders, Mixi’s guaranteed cash deal may seem safer. The question is whether investors will back long-term potential over short-term certainty.

 

Investor Takeaway: Certainty or Upside?

This is a clear clash between certainty and growth. PointsBet shareholders must choose between Mixi’s fully funded A$1.20 cash exit, or Betr’s slightly higher A$1.22 scrip offer that carries share price volatility, integration risk, and a more complex structure.

If the projected A$45 million in synergies are realised and Betr successfully integrates the business, the upside could be significant. But if things don’t go to plan, shareholders could receive less than Mixi’s offer.

For Betr shareholders, success would cement its place as the leading ASX-listed wagering stock, possibly attracting greater investor interest and index coverage. But failure would damage both valuation and reputation.

Increased regulatory attention toward betting companies, especially in advertising and player protection, adds another layer of risk. Both sides must proceed carefully in a market where missteps are heavily scrutinised.

 

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FAQs

• Why did Betr offer 3.81 shares for each PointsBet share?

  Betr structured the offer as an all-scrip deal, offering 3.81 of its shares for every one PointsBet share. This translates to roughly A$1.22 per PBH share, based on Betr’s recent trading average. The aim is to offer slight upside versus Mixi’s A$1.20 cash offer while keeping capital in-house for growth.

• Why did PointsBet reject Betr’s higher bid?

  PointsBet’s board chose Mixi’s A$1.20 cash offer due to its certainty. The deal is fully funded, doesn’t depend on market performance, and comes with regulatory approvals in place. In contrast, Betr’s scrip offer carries execution risk tied to share price and future integration.

• What does Betr’s 19.9% stake mean for the takeover process?

  Betr’s near-20% stake gives it enough power to potentially block rival offers—particularly Mixi’s scheme of arrangement, which requires 75% shareholder approval. It’s a strategic move that positions Betr as both bidder and gatekeeper in the deal process.

• Is the A$360 million figure for Betr’s offer accurate?

  Yes. Based on the 3.81 BBT-for-1 PBH ratio and Betr’s 20-day VWAP, the offer values PointsBet at around A$360 million in total. This includes the share exchange and a proposed A$80 million buyback component.

• What’s the purpose of Betr’s A$80 million share buyback?

  The buyback is meant to provide an optional cash component for PointsBet shareholders, while keeping the deal technically scrip-based. If Betr secures 90% control, the buyback could scale up to A$200 million.